background image

Crypto Weekly Update: Shifting institutions

Cryptocurrencies 5 minutes to read
Picture of Jacob Pouncy
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  Markets saw volatility to the upside after a period of relatively low volume, however we are not out of the woods yet in regard to the crypto bear market.


This week the entire crypto market cap rose by 9% to around $120 bn. Bitcoin and Ethereum rose by 6.5% and 20% respectively.

Public institutions incoming

This week, a co-founder of the digital asset fund Morgan Creek Digital, Anthony Pompliano, announced that the firm had secured a $40 million fund “anchored” by two public pensions. The fund also includes LPs, such as a hospital system, university endowment, insurance company and private foundation. Many in the digital asset investment industry are calling for an inflow of institutional capital into the crypto market. However, many institutions are gaining direct and indirect exposure to cryptocurrencies. These institutions are in the innovators and very early adopters on the institutional adoption S-curve.

XBT pauses launch of crypto basket

The Stockholm based company XBT Provider which offers exchange traded notes that track Bitcoin and Ethereum in both SEK and EUR, shelved its plan to release a basket of crypto assets.  The firm cites its lack of knowledge in dealing with hardforks. A hardfork is a change to the underlying protocol that facilitates crypto assets, which is not compatible with previous versions of the protocol. This lack of knowledge could lead the fund to endorse the wrong asset in a hardfork resulting in a financial loss for the holders of the ETN. Investors should not expect more products from the XBT provider until the firm releases a statement stating otherwise. For now, investors can continue to get exposure to digital assets that include, but are not limited to, the four ETNs from XBT Provider.

Binance DEX

CEO of Binance exchange, Changpeng Zhao, announced that the firm will release its decentralised exchange Binance DEX for public testing on 20 February. A decentralised exchange allows users to trade with each other in a peer-to-peer basis without the need to trust a third party or each other to execute a trade. The announcement of the public test net release for Binance DEX has led to the native coin of Binance, BNB, to reach all-time highs against Bitcoin.  BNB will be used as the fuel for the decentralised exchange, similarly to how ETH is used to transact on the Ethereum blockchain. 
xbtusd

Quarterly Outlook

  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.